There's no need to stretch your budget further than it will go, there are plenty of usable cars available within this modest price range.

A brand new car for less than £10,000 like sound like a fantasy, but it's not. There are some very real cars out there that you can buy new for much less than that. Granted, they won't be the most well built, or exhibit the most technology, but they do the job of carrying you and your passengers anywhere you need to go.

We understand that you might be hoping to get the keys to something more than a bog standard supermini, in which case you might be better suited to a more affordable PCP finance deal which could get you something more desirable for a much more manageable monthly cost.

If cash is the way you want to go though, you can still get plenty for your money at this price point. Alloy wheels, air conditioning and touchscreens all feature on some of the models listed below, as do warranties of up to seven years. Or alternatively, you could turn towards the used car market, where you are guaranteed to get a whole lot more car for your money if you're willing to sacrifice that new car small.

Read on for our list of 10 excellent value cars available for under £10,000.

Best new cars for under £10,000

1. Dacia Sandero

Our pick Dacia Sandero TCe 90 ComfortList price £9,800

In basic Access form, and with the least powerful engine (SCe 75) the Sandero is Britain’s cheapest new car with a price tag of £6,995. The trouble is, it’s very basic and really, you’d be better off buying a used car with more equipment for the same price.

You could say the same about this more expensive TCe 90 Comfort version except that it does make a little more sense as it feels much less basic. It features an entertainment system with sat nav, electric front windows, alloy wheels and body coloured detailing. The 90 badged engine is more powerful than the basic 75, too. There’s even a diesel engine in the line-up, but it pushes the price past £11,000.

Alternatively, a more fashionable used Renault Clio with the same poky engine could be yours for the same price. It will be around three-years old, but it will also come with niceties like alloy wheels and sat-nav.

2. Dacia Sandero Stepway

Our pick Dacia Sandero Stepway 0.9 SCe 75 Essential List price £9,195

We’ve already considered the Sandero hatchback, but upgrade to the slightly taller Sandero Stepway and you’ll find the extra height makes it easier to get into. It looks more rugged, but there’s no extra space inside.

The Stepway Essential SCe 75 is the most basic version and the cheapest with a price of £9,195, but it's 75hp petrol engine is not really enough. You’d be better off pushing over the £10,000 budget if you can and going with the more powerful TCe 90 instead. Standard kit is reasonable with Essential trim which is fortunate since the next level up, Comfort, adds £2,000 to the price.

Alternatively, opt for a used Dacia Duster and you’ll have a car that looks even tougher and is even more spacious. There’s also the option of four-wheel drive.

3. Kia Picanto

A seven-year warranty on the new Kia Picanto is longer than any other competitor, offering peace of mind until the year 2026 if you buy a brand-new model.

It’s also one of the best city cars that you can buy, with space for four adults to travel in relative comfort (on short journeys at least), nimble steering and a ride that cushions the worst of uneven city streets. It is at its best in town, where the 1.0-litre engine is nippy and the car can slot into tiny spaces.

If you need something with a little more power, the 1.25-litre engine would be more suited and regular discounts bring the price of a mid-range ‘2’ model to just slightly less than £10,000, bringing that car’s standard alloy wheels, air conditioning, electric windows and Bluetooth for connecting your phone wirelessly, within budget.

For that price, you could buy a used DS 3, which is larger and roomier all-round, with good looks and more power.

4. Dacia Logan

Our pick Dacia Logan 0.9 SCe 75 EssentialList price £9,495

The Dacia Logan is the cheapest new estate car you can buy, and by some margin. You get a lot of space for your money too, there’s plenty of room in the rear for passengers and the boot will easily accept a week’s shopping with space to spare.

You could choose the basic Access version, but you’d lack the equipment included with higher-specification Ambiance cars, including air conditioning, electric front windows and DAB radio. In an ideal world, you would also go for the TCe engine, but it does come in over-budget at £10,495.

Hop into a used Peugeot 2008 and it’s clear to see where the Logan has cut costs; in Active trim, it includes a dashboard touchscreen, leather steering wheel and cooled glovebox. It’s also a popular crossover, combining the comfort and economy of a conventional car with the higher driving position of an off-roader. A 2016 2008 model can be yours for under £10,000.

5. Skoda Citigo

Our pick Citigo 1.0 MPi 60 S GreenTechList price £8,890

The Skoda Citigo is comfortable over speed bumps and potholes, and has more legroom than most small city cars, so you won’t need to be a contortionist to fit in the back. It's ideal for city driving and can cope on motorways, but you’ll have your foot to the floor in an effort to get the small engine to keep up with traffic.

You can save more money by opting for the three-door version, but this does make getting in awkward for rear occupants.

The car is virtually identical to the Seat Mii and Volkswagen Up (all three brands are part of the Volkswagen Group), but the other two cars are generally around £500 more expensive.

Alternatively, consider a used Mazda 2. It’s more powerful than the Citigo, and in terms of comfort and quality feels a rung or two higher up the ladder.

6. Toyota Aygo

With its bold ‘X’ graphic on the grille, sharply creased lines and choice of wild colours, the Toyota Aygo is no city car for shrinking violets.

The interior is not as cramped as the car’s swept-back design suggests and it’s reasonably practical, although not quite as spacious as a Skoda Citigo.

X trim features LED daytime running lights, USB and Aux connectivity and electric front windows.. You only get steel wheels though, and alloys are well out of reach of this budget. All versions come with Toyota’s five-year warranty.

There are usually good deals available on the Aygo too, cutting the price of five-door X models below that £10,000 budget.

There’s more zany design if you look at the used market, thanks to the Nissan Juke: two-year-old mid-range petrol cars are less than £10,000 and bring extra height, but not a great deal more space than the Aygo.

7. MG 3

Our pick MG 3 1.5 ExploreList price £9,495

Who would've thought you'd be able to get a car with that badge on the nose for less than £10,000? The brand itself may have changed, but the MG 3 does at least look very striking amongst a horde of chic city cars.

On the outside it looks sharp and tidy, but on the inside it all gets a bit messy and underwhelming. But while it may not be as well built as a Volkswagen Up it is as fun, if not more so, to drive thanks to precise steering and handling.

The engine is a rather simplstic 1.5-litre petrol that's well out of it's depth among the new age, ultra-efficient engines of 2019, as is the equipment list in entry-level Expore spec. You do at least get Bluetooth and electric windows though.

At this price range the MG 3 offers something different and it will certainly appeal to drivers who want a more unique experience. But for the same price you could quite easily get your hands on a much better equipped Volkswagen Polo that's as little as two-years old.

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